What was the turning or trigger point for you to make your first investment? I'm a fresh grad and I have been reading about investing, but the inertia to start is very real and quite frightening...?

Question

Xue Miao · Accepted Answer

I totally understand! I'm surrounded by friends who do not invest, so I don't really have people discussing such topics with me as well.

I think my trigger point came when I first started working and started growing my savings with a steady paycheck. It was then when I also started to pick up more personal finance knowledge and knew I had to do something with my money.

I think it helped when I started with more beginner-friendly stuff, and I dumped money that I could afford to lose. The first step might be intimidating (or exciting, at least for me!), but you'll definitely gain confidence along the way. You just need that bit of courage to get started!

All the best! :-)

Jiayee · Answer

Everything started when I started working after graduation.

Before that, as a student, I purchased Singapore Savings Bonds when they first came out.​​​

Daren Khek · Answer

I realised that I will never be ‘financially woke’ just by stashing all my cash in savings account.

I started to read up on investing during circuit breaker period. Learnt about the power of compounding, so I took full advantage of being younger to start investing!

Rachelle · Answer

For me, it's the realisation that simply saving is not enough to beat inflation, and that investing doesn't have to be very complicated for a beginner.

With the wealth of information online, it's not difficult to start from something simple like RSP or robos, to read up and learn along the way, before delving into something more tricky such as stock picking.

Though I did start my first investment with STI ETF a couple years ago ahaha...​​​

Sudhan · Answer

Great question, anon.

My trigger point came after I read "Rich Dad, Poor Dad" and realised I have to "do something" with my money to grow it. Putting it in the bank won't help.

That got me finding out more about personal finance and investments.

To help with the inertia, after you have [gotten your basics sorted out](https://blog.seedly.sg/checklist-to-do-before-investing/) and have done your research, you just got to put your first dollar in. It's easier said than done but the longer you delay, the shorter time you have for your [money to compound](https://blog.seedly.sg/start-investing-early/).

All the best!

Justin Mok · Answer

I started into serious investing when one of my colleagues preached about it. I was just doing my Intern and we often talked about stock markets etc.

The ironic thing was, I study capital markets and finance during my Poly days but never started because I was too afraid of the downside. It is natural for humans to be risk-averse.

I figured that just by consuming knowledge isn't magically going to make my finances or bank account look nicer. Therefore, I took the plunge into opening up my first brokerage account and deposited my money into it. I can assure you, once you make the first move, everything will slowly come together.

I would say, mix with the right people, who have similar interests or experience in this. Talk to them and gain some insights. You can also look for webinars hosted by some of the many Fintech companies in Singapore like Kristal.AI or StashAway.

Lastly, you have to identify your goals. What is the motivation for you investing? With investing, there is a whole realm of strategies and approaches to achieving your goals. Do look out for those that are closely aligned with it.

Reenie Poh · Answer

My trigger point was seeing my parents struggling during the 97' crisis. From than on, I knew that in order to not be in that situation, I need to save hard and make my money work even harder so as to achieve finance security. Setting a saving goal helps in pushing myself hard!

Zhi Wei Teo · Answer

Yes, applying the theory of investing using your own savings can be frightening as it involves a certain level of risk.

First, you can ask for advice from your peers who are interested and currently investing. This will bring greater insights, however please ensure that you have your own way of thinking as well :)

Also, invest small amounts initially and view it as fees u pay for your investment jouney in the event there are losses. Then, refrain from viewing your portfolio on a regular basis, especially if you are investing for a long term wealth

Feel free to check out [here](https://zwvalueinvesting.wordpress.com) to find out more about investment and savings

Jason Lee · Answer

For me, I've been saving since young and wasn't spending much also I want more money. So I searched up tons on google on how to earn/save/invest more money and here I am with seedly.

Sharon · Answer

Actually, my trigger point is because I'm not getting any younger. 🤣

Well, jokes aside, there was some frustrations with my financial advisor, so I decided that it's better to aim myself with some investing knowledge than rely on external help.

Frankie Rappaport · Answer

I have to admit, that in my case I needed no turning point, because I started (small time) as a pupil when I imitated my father investing privately into single stocks. Our banker gave investing 'tips'. But i feel after all these years, without really a sound strategy. Also in those times the markets almost only went up and up, so it was not difficult for my father to be successful (80'ies years). I only had 2-3 investments then, but started later again as a student (again small time, still single stocks that then indeed were good investments: pharma and technology).

I feel when You talk of 'inertia' it is normal as a beginner that You are **overwhelmed** of all the opportunities, of all the different voices on the best mode of investing and the difficult to gauge risk and fear of losses.

You can only begin when you begin.

Try to read a lot, start with something what you feel o.k.

A lot of the community here are convinced with what I also practiced in the past: single stock investing. Today I do not believe that this could be more successful than passive ETF investing when compared to an appropriate index, though I still own and still buy several (technology) stocks, when my majority is in ETFs.

I'd recommend to 'begin the beginning' you define an amount You could 'sacrifice' (though the risk You could lose much when You are super-patient and calm is extremly low) and start with a ++**global index ETF**++ and a very ++**cheap online broker**++.

TD Ameritrade (long waiting times) would be excellent, FSMOne & POEMS (both mainstream SG brokers), still seem acceptable fee-wise. Fees will drop anyway in the future.

Which ETF then? You could pick one of the global (= super-diversified) passive ETFs out of my #1 marked group mentioned here:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy​​​

Samantha Ong · Answer

Hi anon, triggering point for me was wanting to really learn about how else I could make full use of the money I have instead of just letting it sit in the bank. Inertia was really real to me as well but what I did was just putting a small amount of money ( a sum I'm comfortable with parting away) and just experimenting/ learning on the spot. For me, this also served as a motivation to continue learning and reading up more about how to grow them. I found this very helpful because regardless of how much I read, I never felt prepared. With that said, all the best!

JK · Answer

I understand where you coming from, coz it took me more than half a year since I started actively reading up on investment before I jumped in. One thing I remembered feeling, was that the more I read/researched, the more I realised how vast the investment world is, and got afraid.

My first investment was with Stashaway, the only robo I hear my close friend talking about, and I figured, might as well allow someone to manage my portfolio for me at low fees while I continue researching.

That first step will seem daunting, but it seems like investment is all about logic over emotions. Another example of logic over emotions is when market dipped, and when the whole world is panic-selling, that is when you ought to stick with your logic and hold on, or even buy more.

All the best, and I hope that you are able to take the first step when you are ready.

Malimalihom · Answer

Hi there,

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Carrie Sim-Goh · Answer

After 14 years of working, accumulating savings, and settling payments for my bills, housing loans, and maintaining a modest but comfortable lifestyle, I realise I am in a place of privilege where I can afford to take more risks with money.

My parents are not investors and my background is quite humble, so the inertia was great for me.

But taking risks at work in a good high growth environment which had its fair shares of up and downs, made me more open to the idea of investing since I can see through life experience that what looks like “loss” can be short-term (e.g. less than 3 - 5 years) and long-term (over 10 years) some of the riskier choices I have made helped me gain in the long run. I apply this mindset of evaluating what I’m “willing to lose” to the investments I decide to put my money in.

But to reach here I had to grow in confidence in my earning and saving ability. That was when inertia started to fade away.

I sometimes wish I had more courage in my early twenties to take the first step to invest, but I do acknowledge it’s better to be ready and willing to lose before doing anything. It requires adjustment of mindset and making peace with my decisions.

I would recommend trying your hand at earning extra income outside of work or finding a balance of maintaining a life worth living and how much that costs. With the extra cash you’re willing to lose, you can start with smaller investments through Roboadvisors like Stashaway. Take it as an experiment. Experiments can validate or invalidate hypotheses and only check it on a cadence that is necessary for the experiment. If you check too often, you may get worried or confused. So you’ll need to create a framework for yourself to manage those emotions.

All the best!

linseed · Answer

Totally get you! I sat around twiddling my thumbs because of my fear for ages. Start small, start with something lower risk (if losing money is a big fear). For me, I started with SSB and STI (probably not great instruments for you now) and slowly got educated.​​​

Jimmy Soh · Answer

The trigger point for me to make my first investment is to become financially free one day. That doesn't mean that I'm lying down on the beach somewhere drinking a glass of pina colada. Financially free is to do work that I enjoy the most. Having a steady 2nd stream of income is also liberating because it means that I'm less reliant on just the primary income source - salary.

Once you have a goal in mind, I would say you will find some ways to actually get started. Your inertia to start investing is normal because you are afraid of losing and you are learning to do something that you have never done before.

Your personality type will also affect your decision-making process. I'm sure you are a thinker and you will weigh all the various possible outcomes and analyze everything to investing. Essentially, you are suffering from analysis paralysis. One way to overcome this inertia is to first invest a small amount - an amount that you are willing and can afford to lose.

Once you get started, you will find it easier as you gain confidence and knowledge. You may require a second opinion and tailored advice regarding your investment. Speaking to a financial planner may help you clear up your doubts and help you get started on your investing journey.​​​

Jesslyn · Answer

Grow wealth and beat inflation. No need to fear or fomo, start off with a robo advisor or etf then as you learn and progress then you can consider individual stocks picking

Yuantai Liu · Answer

Hi Anon,
Great question, and you are definitely not alone.
There are lots of good responses given, and I will just add on one point: find a mentor and an accountability partner.

Your mentor should be someone a couple of steps ahead of you in the investing journey, and your accountability partner is someone that you trust fully to keep you moving.

I am making the assumption that you are still young in your mid twenties... Use this to your advantage, for time is a priceless resource when it comes to investing.

All the best in your new journey!

Love,
Happy Coach

Lin Yun Heng · Answer

Started back in JC because i wanted more passive income, now with compound interest, i effectively tripled my networth from 3 years ago so it is somethng i truly believe in. I am living example that long term investments work